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Republic Services(RSG) - 2025 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Resolute Mining reported a strong quarter with production of 75,962 ounces at a cost of $16.68 per ounce, maintaining a net cash position of just above $110 million [1][27] - Operating cash flow for Q2 reached $85 million, driven by $262 million in revenue and 80,000 ounces of gold sales at an all-time high price of over $3,400 per ounce [27][28] - The Group's all-in sustaining cost was $16.68 per ounce sold, representing a $40 per ounce improvement from Q1 [31] Business Line Data and Key Metrics Changes - The Syama Mine in Mali produced 41,000 ounces of gold at an all-in sustaining cost of $2,134, which was below expectations due to explosive supply chain issues [10][11] - The Mako operation in Senegal had a strong quarter with production of approximately 35,000 ounces at an all-in sustaining cost of $972, exceeding expectations [17][18] Market Data and Key Metrics Changes - The company is on track to produce between 275,000 to 300,000 ounces in 2025, with a target of over 500,000 ounces by 2028 [2][3] - The acquisition of the Doropo and ABC projects is expected to significantly enhance the company's production capabilities and market position in West Africa [3][4] Company Strategy and Development Direction - The company aims to become a mid-tier African gold producer with a diversified portfolio, focusing on geographic diversification and internal growth opportunities [37] - The company is actively evaluating M&A opportunities, although the current pipeline is considered limited [37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of the Syama operation despite current supply chain disruptions, emphasizing the asset's long-term value [13] - The company is closely monitoring the permitting process for the Doropo project, with expectations for completion by October [6][66] Other Important Information - The company is facing challenges with explosive supply chain issues in Mali due to security concerns and permitting delays [10][11] - The company has made significant progress in exploration activities, particularly in Côte d'Ivoire, with promising projects like ABC and Ladabo [24][25] Q&A Session Summary Question: What is the situation regarding explosives supply? - Management indicated that the explosives supply issue is due to a combination of supplier changes and permitting challenges, but they are working to resolve it [40][42] Question: Can you provide an update on Ravenswood? - Management stated that the sales process for Ravenswood was terminated due to operational challenges, and they are monitoring the situation as creditors [45][47] Question: How will Bentaco and Tombo be sequenced in mining operations? - Management explained that Bentaco is expected to be operational in 2027, with Tombo following, and they will likely process a mix of stockpile ore and Bentaco ore [50][51] Question: What is the outlook for VAT recovery in Senegal? - Management confirmed that VAT recovery is improving in Senegal, while Mali continues to experience cash leakage [61][62] Question: What is the status of the permitting process for Doropo? - Management clarified that the permitting process is underway, with applications lodged and expectations for completion by October, although it may be delayed [66][70]